Organizing Entrepreneurial Judgment

Drawing on insights from Austrian economics, it describes entrepreneurship as judgmental decision made under uncertainty, showing how judgment is the driving force of the market economy and the key to understanding firm performance and organization.

Description

Management texts have been written by the score and there are a few on entrepreneurship, but now Peter Klein and Nicolai Foss have fused together the two disciplines to illuminate what creates wealth and prosperity in society.

The authors are the preeminent scholars in analyzing the firm and entrepreneurship, devoting their entire careers to studying something that had been long neglected by academic economists and management scholars until the last 20 years.

Now entrepreneurship classes are all the rage. While in real life government strangles businesses large and small everyday, the academic community has finally woken up to what creates wealth--entrepreneurial activity. This is a positive sign. And again it is an advancement for Austrian economics, as it has been the Austrian school that has focused on the role of the entrepreneur in the market process, while other schools of thought haven’t recognized the role of entrepreneurs at all.

Foss and Klein recognize entrepreneurship as judgemental decision making under uncertainty. They show how judgement is the driving force of the market economy and that to understand the performance of a firm, its managers, and organization, the acumen of entrepreneurs and managers must be analyzed and dissected.

Where management books are long on motivation and aphorisms, Foss and Klein explore the wide sweep that is entrepreneurial activity; including capital theory and structure, limits of the firm, economic calculation, and firm organization.

Although thoroughly rigorous, Organizing Entrepreneurial Judgement is very readable, geared not just to students and academics, but is also accessible to practicing managers and entrepreneurs as well.